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VNTR

Venator Materials NYSE:VNTR Stock Report

Last Price

US$0.88

Market Cap

US$95.0m

7D

-24.8%

1Y

-70.1%

Updated

01 Oct, 2022

Data

Company Financials +

Venator Materials Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Venator Materials
Historical stock prices
Current Share PriceUS$0.88
52 Week HighUS$3.47
52 Week LowUS$0.87
Beta1.35
1 Month Change-48.54%
3 Month Change-59.26%
1 Year Change-70.07%
3 Year Change-61.06%
5 Year Change-96.14%
Change since IPO-95.74%

Recent News & Updates

Sep 29

Venator Materials Could Struggle To Pass On Cost Increases To Its Clients

Summary Venator Materials booked an adjusted net income of $14 million in Q2 2022 as average selling prices at its titanium dioxide business rose by 31% year on year. However, titanium dioxide prices in China have declined significantly over the past few months and Venator Materials could face significant pricing pressure in Europe soon. Meanwhile, energy prices in Europe keep rising as the Russian invasion of Ukraine is still escalating. In my view, the company’s adjusted net income could be back in the red by Q4 2022. Introduction In June, I wrote a bearish article on SA about titanium dioxide producer Venator Materials (TROX) in which I said that a $85 million settlement with Tronox Holdings (TROX) seemed priced in and that the company was starting to look overvalued as its business hasn't been doing well over the past few years. Well, Venator Materials booked solid Q2 2022 as it managed to pass on cost inflation to its customers thanks to a strong titanium dioxide market. The company is in the black once again as the adjusted net income came in at $14 million. However, energy prices in Europe have been rising over the past few months due to the escalating conflict in Ukraine and I think that Venator is likely to struggle to pass on further cost increases to its customers as titanium dioxide prices in China have been falling rapidly since July. Let’s review. Overview of the recent developments In case you haven’t read my previous article about Venator Materials, here’s a short description of the business. The company operates seven titanium dioxide manufacturing facilities and a performance additives business focused functional additives, color pigments, and timber treatment chemicals that includes another 13 manufacturing and processing facilities worldwide. About three-quarters of the revenues and EBITDA of Venator Materials come from the titanium dioxide business and the company is focused on the European market. Venator Materials Venator Materials has been in the red over the past several years, but this changed in 2022 as the adjusted net income came in at $14 million and $6 million in Q2 and Q1, respectively. Venator Materials Venator Materials So, how did Venator achieve this turnaround? Well, there have been cost pressures from higher prices for feedstocks, and energy in 2022 due to supply chain issues and the situation in Europe is made worse due to the conflict in Ukraine. To mitigate this, Venator Materials decided to manage its margins by switching to monthly customer tailored price reviews and this has been working well so far thanks to strong titanium dioxide prices as demand has been strong in North America. In Q2 2022, the average selling prices of the company's titanium dioxide business rose by 7% quarter on quarter and 31% year on year which helped it improve its EBITDA despite a lower production volume due to issues with the Scarlino facility in Italy. Venator Materials In Q2 2022, production at the Scarlino plant was reduced by a third as there is limited landfill capacity. The facility generates gypsum as a byproduct and Venator Materials is currently working with governmental authorities for the authorization of continued gypsum disposal. However, it seems that there has been little progress on this issue and the company revealed at its Q2 earnings call that it has now suspended two-thirds of titanium dioxide production there to preserve its remaining available landfill capacity. Unless there is a resolution of this issue soon, the Scarlino plant could be closed for good in the near future. What’s even worse news for Venator Materials is that the company could soon face significant pricing pressure in Europe as titanium dioxide prices in China have been falling fast over the past few months. This should incentivize Chinese competitors to increase exports. Business Analytiq Meanwhile, energy prices in Europe keep rising as the Russian invasion of Ukraine is still escalating. The latest major event includes leaks from two Russia-to-Germany pipelines under the Baltic Sea and this decreases the chance of European gas prices returning to normal levels anytime soon. Trading Economics You just can’t have a competitive chemical industry without low energy prices, and it seems that the margins of Venator Materials could decline significantly in the near future. Looking at the Q3 results expectations, BMO Capital recently reduced its EPS forecast to $0.02 from $0.05. It seems that the company's return to profitability could be short-lived. Turning our attention to the balance sheet, I think the situation doesn’t look good either. The net debt to equity ratio was 1.5x as of June as free cash flow for the quarter came in at just $58 million despite Venator Materials receiving the $85 million from the settlement from Tronox. Primary working capital was $54 million cash use due to timing of feedstock shipments and higher costs, and the company expects its cash use for the full year to be above $30 million. Considering that CAPEX for H2 2022 is expected to be around $60 million, the situation looks grim. Venator Materials Overall, I’m bearish but I think that short selling could be dangerous as the market valuation is down to $113 million as of the time of writing and sometimes the share prices of microcap companies can increase for spurious and unknown reasons. In addition, Venator Materials is currently trading at below 0.2x book value. In my view, risk-averse investors should avoid this stock.

Sep 17
The Return Trends At Venator Materials (NYSE:VNTR) Look Promising

The Return Trends At Venator Materials (NYSE:VNTR) Look Promising

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...

Shareholder Returns

VNTRUS ChemicalsUS Market
7D-24.8%-1.2%-2.5%
1Y-70.1%-15.4%-23.2%

Return vs Industry: VNTR underperformed the US Chemicals industry which returned -15.4% over the past year.

Return vs Market: VNTR underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is VNTR's price volatile compared to industry and market?
VNTR volatility
VNTR Average Weekly Movement9.2%
Chemicals Industry Average Movement6.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: VNTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: VNTR's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20173,500Simon Turnerhttps://www.venatorcorp.com

Venator Materials PLC, together with its subsidiaries, manufactures and markets chemical products worldwide. It operates through Titanium Dioxide and Performance Additives segments. The Titanium Dioxide segment offers titanium dioxide (TiO2), such as rutile, anatase, and ultrafine TiO2 products for use in coatings, printing inks, PVC window frames, plastic masterbatches, cosmetics, pharmaceuticals, food, polyester and polyamide fibers, catalysts, and cosmetics products.

Venator Materials Fundamentals Summary

How do Venator Materials's earnings and revenue compare to its market cap?
VNTR fundamental statistics
Market CapUS$94.95m
Earnings (TTM)US$57.00m
Revenue (TTM)US$2.39b

1.7x

P/E Ratio

0.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VNTR income statement (TTM)
RevenueUS$2.39b
Cost of RevenueUS$2.17b
Gross ProfitUS$222.00m
Other ExpensesUS$165.00m
EarningsUS$57.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.53
Gross Margin9.28%
Net Profit Margin2.38%
Debt/Equity Ratio167.6%

How did VNTR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VNTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VNTR?

Other financial metrics that can be useful for relative valuation.

VNTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA5.9x
PEG Ratio-0.04x

Price to Earnings Ratio vs Peers

How does VNTR's PE Ratio compare to its peers?

VNTR PE Ratio vs Peers
The above table shows the PE ratio for VNTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.7x
NTIC Northern Technologies International
16.8x27.9%US$122.9m
NANX Nanophase Technologies
107.7xn/aUS$116.4m
ADES Advanced Emissions Solutions
2xn/aUS$52.2m
FF FutureFuel
16.5xn/aUS$264.3m
VNTR Venator Materials
1.7x-47.2%US$95.0m

Price-To-Earnings vs Peers: VNTR is good value based on its Price-To-Earnings Ratio (1.7x) compared to the peer average (35.7x).


Price to Earnings Ratio vs Industry

How does VNTR's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: VNTR is good value based on its Price-To-Earnings Ratio (1.7x) compared to the US Chemicals industry average (13.9x)


Price to Earnings Ratio vs Fair Ratio

What is VNTR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VNTR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.7x
Fair PE Ratio3x

Price-To-Earnings vs Fair Ratio: VNTR is good value based on its Price-To-Earnings Ratio (1.7x) compared to the estimated Fair Price-To-Earnings Ratio (3x).


Share Price vs Fair Value

What is the Fair Price of VNTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VNTR ($0.88) is trading below our estimate of fair value ($5.33)

Significantly Below Fair Value: VNTR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Venator Materials forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-47.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNTR's earnings are forecast to decline over the next 3 years (-47.2% per year).

Earnings vs Market: VNTR's earnings are forecast to decline over the next 3 years (-47.2% per year).

High Growth Earnings: VNTR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VNTR's revenue (3% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: VNTR's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VNTR's Return on Equity is forecast to be low in 3 years time (7.8%).


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Past Performance

How has Venator Materials performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-26.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VNTR has a large one-off gain of $26.0M impacting its June 30 2022 financial results.

Growing Profit Margin: VNTR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VNTR has become profitable over the past 5 years, growing earnings by -26.4% per year.

Accelerating Growth: VNTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VNTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (21.1%).


Return on Equity

High ROE: VNTR's Return on Equity (10.6%) is considered low.


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Financial Health

How is Venator Materials's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VNTR's short term assets ($1.2B) exceed its short term liabilities ($554.0M).

Long Term Liabilities: VNTR's short term assets ($1.2B) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: VNTR's net debt to equity ratio (148.7%) is considered high.

Reducing Debt: VNTR's debt to equity ratio has increased from 65.5% to 167.6% over the past 5 years.

Debt Coverage: VNTR's debt is not well covered by operating cash flow (1.1%).

Interest Coverage: VNTR's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


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Dividend

What is Venator Materials's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Venator Materials Dividend Yield vs Market
How does Venator Materials dividend yield compare to the market?
SegmentDividend Yield
Company (Venator Materials)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Chemicals)2.4%
Analyst forecast in 3 Years (Venator Materials)0%

Notable Dividend: Unable to evaluate VNTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VNTR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VNTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VNTR's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VNTR has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Simon Turner (59 yo)

5.67yrs

Tenure

US$9,671,000

Compensation

Mr. Simon Turner has been the Chief Executive Officer and President of Venator Materials PLC since April 28, 2017 and has been its Director since 2017. Mr. Turner served as the Division President of Pigmen...


CEO Compensation Analysis

Simon Turner's Compensation vs Venator Materials Earnings
How has Simon Turner's remuneration changed compared to Venator Materials's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$57m

Mar 31 2022n/an/a

-US$59m

Dec 31 2021US$10mUS$914k

-US$77m

Sep 30 2021n/an/a

-US$149m

Jun 30 2021n/an/a

-US$144m

Mar 31 2021n/an/a

-US$140m

Dec 31 2020US$5mUS$763k

-US$112m

Sep 30 2020n/an/a

-US$228m

Jun 30 2020n/an/a

-US$205m

Mar 31 2020n/an/a

-US$165m

Dec 31 2019US$4mUS$849k

-US$175m

Sep 30 2019n/an/a

-US$70m

Jun 30 2019n/an/a

-US$419m

Mar 31 2019n/an/a

-US$244m

Dec 31 2018US$8mUS$938k

-US$163m

Sep 30 2018n/an/a

-US$26m

Jun 30 2018n/an/a

US$393m

Mar 31 2018n/an/a

US$228m

Dec 31 2017US$7mUS$354k

US$126m

Sep 30 2017n/an/a

US$52m

Jun 30 2017n/an/a

-US$6m

Mar 31 2017n/an/a

-US$64m

Dec 31 2016US$4mUS$517k

-US$95m

Dec 31 2015US$4mUS$545k

-US$369m

Compensation vs Market: Simon's total compensation ($USD9.67M) is above average for companies of similar size in the US market ($USD774.31K).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VNTR's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: VNTR's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:VNTR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 Sep 22BuyUS$1,499,363AMISTA Investment Company, asCompany780,918US$1.92

Ownership Breakdown

What is the ownership structure of VNTR?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders829,5870.8%
Public Companies9,688,7619.0%
General Public16,535,23115.3%
Institutions38,419,20935.6%
VC/PE Firms42,429,80739.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 82.67% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
39.32%
SK Capital Partners
42,429,807$37.3m0%no data
10.14%
AMISTA Investment Company, as
10,944,924$9.6m7.68%no data
8.98%
Huntsman Corporation
9,688,761$8.5m0%no data
7.9%
Capital Research and Management Company
8,519,540$7.5m0%no data
3.24%
Russell Investment Management, LLC
3,493,002$3.1m-22.1%0.01%
1.49%
Norges Bank Investment Management
1,612,704$1.4m0%no data
1.24%
Monaco Asset Management
1,340,065$1.2m114.23%0.57%
1.23%
Cruiser Capital
1,330,879$1.2m-0.96%1.12%
1.18%
Dimensional Fund Advisors LP
1,276,155$1.1m-2.25%no data
1.03%
Meros Investment Management, LP
1,110,461$977.2k-8.02%1.03%
1.02%
Acuitas Investments, LLC
1,101,184$969.0k0%0.56%
0.83%
Ninety One UK Limited
898,487$790.7k0%no data
0.81%
General American Investors Company, Inc.
874,076$769.2k0%0.08%
0.74%
Jade Capital Advisors, LLC
795,241$699.8k-10.17%5.89%
0.46%
Millennium Management LLC
499,425$439.5k60.3%no data
0.44%
Wolverine Asset Management, LLC
477,943$420.6k0%0.03%
0.37%
Renaissance Technologies LLC
400,138$352.1k23.98%no data
0.36%
Hosking Partners LLP
388,809$342.2k-15.73%0.01%
0.34%
Whitebox Advisors LLC
362,857$319.3k-5.24%0.04%
0.32%
Connor, Clark & Lunn Investment Management Ltd.
346,611$305.0k6.52%no data
0.31%
Two Sigma Advisers, LP
335,800$295.5k9.06%no data
0.26%
Simon Turner
280,285$246.7k0%no data
0.24%
Boston Partners Global Investors, Inc.
257,904$227.0k-54.68%no data
0.21%
Two Sigma Investments, LP
228,883$201.4k-5.71%no data
0.2%
Concentric Capital Strategies, L.P.
213,300$187.7k-21%0.17%

Company Information

Venator Materials PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Venator Materials PLC
  • Ticker: VNTR
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: US$94.954m
  • Shares outstanding: 107.90m
  • Website: https://www.venatorcorp.com

Number of Employees


Location

  • Venator Materials PLC
  • Titanium House
  • Hanzard Drive
  • Stockton-On-Tees
  • Cleveland
  • TS22 5FD
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNTRNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDAug 2017
1ECDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2017

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.